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Can Leviathan Governments Mitigate the Tragedy of the Commons?

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  • Wirl, Franz

Abstract

This paper explores the conjecture whether the Leviathan motive of politicians--to tax for the purpose of raising revenues rather than for benevolent, Pigovian motives--helps to overcome the inefficiency of international pollution spillovers such as in the cases of acid rain and global warming. It turns out that this conjecture is true in a static context that captures flow externalities (e.g., acid rain) as long as environmental damages are not too high. In contrast, Leviathan motives aggravate the already existing inefficiency in the case of stock externalities (e.g., global warming) despite probably high taxes at the beginning. Copyright 1996 by Kluwer Academic Publishers

Suggested Citation

  • Wirl, Franz, 1996. "Can Leviathan Governments Mitigate the Tragedy of the Commons?," Public Choice, Springer, vol. 87(3-4), pages 363-377, June.
    • Handle: RePEc:kap:pubcho:v:87:y:1996:i:3-4:p:363-77
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    Cited by:

    1. Wirl, Franz, 2014. "Taxes versus permits as incentive for the intertemporal supply of a clean technology by a monopoly," Resource and Energy Economics, Elsevier, vol. 36(1), pages 248-269.
    2. Qinghu Liao & Wenwen Dong & Boxin Zhao, 2023. "A New Strategy to Solve “the Tragedy of the Commons” in Sustainable Grassland Ecological Compensation: Experience from Inner Mongolia, China," Sustainability, MDPI, vol. 15(12), pages 1-24, June.
    3. Franz Wirl & Claus Huber & I.O Walker, 1998. "Joint Implementation: Strategic Reactions and Possible Remedies," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 12(2), pages 203-224, September.
    4. Halkos, George, 2009. "A Differential game approach in the case of a polluting oligopoly," MPRA Paper 23742, University Library of Munich, Germany.
    5. Alexandra Mirchevska, 2018. "Common-pool resource management: a new institutional economics perspective," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 124-143.

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